Article Highlights

  • US NFP: 223K vs. 233K expected, 254K previous
  • US unemployment rate down to 5.3% vs. 5.4% expected and previous
  • US labor participation rate falls to 62.6%, lowest since 1977
  • US average hourly earnings: 0.0% vs. 0.2% expected and previous
  • US initial jobless claims: 281K vs. 270K expected, 271K previous
  • US factory orders: -1.0% vs. -0.5% expected, -0.7% previous
  • AU AIG services PMI, retail sales numbers on tap
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U.S. session forex traders seem to have closed shop early, as they barely moved the major currencies around ahead of the U.S. Independence Day and Greek referendum weekend.

The dollar started the session on the wrong side of the charts after Uncle Sam’s closely-watched NFP report disappointed expectations. Non-farm payrolls came in at 223,000 in June, missing expectations of a 233,000 uptick. It also didn’t help that the unemployment rate slipped from 5.4% to 5.3% mostly because labor participation rate fell to a whopping 38-year low. Heck, even the average hourly earnings didn’t show growth for the month!

The Greenback didn’t get much flak over it though, partly because the numbers are unlikely to stop the Fed from raising its interest rates at least once before the year ends and partly because traders are unwilling to commit to trading positions ahead of this weekend’s potentially market-moving Greek referendum.

EUR/USD ended the session only 9 pips higher than its open price while GBP/USD inched 20 pips higher (+0.13%) to 1.5604 and USD/JPY slipped by 49 pips (-0.40%) to 123.05. Even USD/CHF, rumoured to be artificially propped up by the Swiss National Bank (SNB), fell by 59 pips (-0.62%) to .9437. Not bad for an NFP report miss, huh?

Currency bulls also flexed their muscles on the comdolls. Both gold and oil prices ended the day in red, but the Aussie, Loonie, and Kiwi all capped the day higher against the Greenback.

AUD/USD jumped by 40 pips (+0.53%) to .7632, USD/CAD plunged by 77 pips (-0.61%) to 1.2545, and NZD/USD popped up by 61 pips (+0.92%) to .6729. Yowza!

Let’s see if Asian session forex traders are in the mood to extend the dollar’s losses or if they’re also willing to call an early weekend. Australia has just printed its AIG services PMI (which came out stronger-than-expected) and is slated to release its retail sales numbers at 1:30 am GMT. Market players are expecting a 0.5% growth after stagnating last month, but keep your eyes glued to the tube for any news that might cause significant reaction among the major currencies!

See also:

London Session Recap

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